Subscribe to SearchCap

US, European Antitrust Regulators To Confer On Google Case

According to the Wall Street Journal (WSJ), the top two US and European antitrust regulators will meet in Europe next week to compare notes and discuss potential outcomes. Both are negotiating with Google to settle antitrust claims that would avoid formal legal action.

The FTC’s Chairman Jon Leibowitz will meet with the EU’s Joaquin Almunia. The claims against Google on both sides of the Atlantic are similar, though not identical. In addition, European and American antitrust laws are different though they express the same overarching principles.

The WSJ reported that any concessions made by Google in Europe could give the FTC more leverage if it chooses to wait until the Europeans act:

Earlier in the probes, it appeared possible that the European regulator would announce the outcome of its probe before the FTC made a final decision. That timeline could benefit U.S. regulators because Europe has broader competition laws, meaning the FTC could gain from any concessions Google made in Europe.

Europe’s antitrust laws are more flexible than those in the US, where the burden of proof in any legal case would be higher for the FTC.

In contrast to the apparent FTC posture, Europe’s Almunia has not signaled he’s shying away from the “search bias” issue. However a remedy that involves Google simply labeling its “own” results would likely not satisfy critics.

The WSJ also points out that notwithstanding the advantages of letting Europe act first, the FTC may be forced to act sooner because a pro-antitrust enforcement commissioner is leaving and will be replaced by one less inclined toward legal action against Google:

The FTC is on a tighter time frame. One of its commissioners who has generally favored active antitrust enforcement, J. Thomas Rosch, will soon depart the agency. The nominee to replace him, Joshua D. Wright, is expected to favor a more conservative approach that might make him less inclined to support a suit against Google.

Leibowitz and Almunia will probably discuss what concessions each is likely to gain and the outlook for any legal action against Google. There may even be some tactical coordination between the two officials. Neither regulator wants to bring a formal case but neither can “politically” just walk away without some meaningful concessions from Google.

Attend MarTech and hear first-hand how brands like Coca-Cola, Aetna, Dell, EMC and Netflix are harnessing the power of technology to produce exceptional customer experiences that deliver business results. Visit with over 60 companies in expo hall. Don't miss the only US-based MarTech conference this year. Register today!

About The Author

Greg Sterling is a Contributing Editor at Search Engine Land. He writes a personal blog, Screenwerk, about connecting the dots between digital media and real-world consumer behavior. He is also VP of Strategy and Insights for the Local Search Association. Follow him on Twitter or find him at Google+.

Sponsored

Discover what's up in the business of marketing each Friday.

Durant Imboden

One word: “Collusion.”

http://ftc.gov/ MonopolizedSearch

It’s amazing how the FTC tries to apply antitrust laws dating back to the 1800s on Google’s abuse of a medium that was never conceived of at the time. Sure, minor tweaks to these laws has occurred over time, but the FTC’s poor position highlights the need for modernized laws that protect businesses and consumers in the digital age. I suspect this is why the FTC is joining forces with the EU. But if this strategy does not work, we will likely see the continued erosion of quality and competition in search.

http://www.chaddo.com/index.php/local-seo/ Chad Kimball

I don’t like the idea of searchers finding Google’s product even if that’s not the best solution for their search query. At the same time, is it right to expect Google will respect market competition on it’s own web search results page? Is that search page Google’s property or a public space? This seems like a tricky issue.

daveintheuk

It is very encouraging to hear the EU regulators have more of a spine than the FTC… however I suspect they will have a hard time getting Google to comply. Furthermore, I suspect the harder regulators come down on Google the harder they will push

fakebuck

Money makes the world go round. Google will win, even if they are wrong. Thats the way that it works.

treepodia

I’m interested in seeing the outcome of this.

daveintheuk

Sadly you are probably right about this… the fact that Google spends hundreds of millions of dollars lobbying politicians is a pretty strong clue that not everything they do is “super cool” as His Mattness would put it.

Durant Imboden

Google was slow to enter the lobbying game (it didn’t hire lobbyists until 2007), so it would be more reasonable to say that Google’s lobbying efforts fall under the heading of “better late than never,” especially with its competitors (such as those who are colluding in the so-called FairSearch Coalition) spending so much to pay off politicians and influence regulators.